Arm's Length Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Arm's Length, written in plain English, along with examples of how it is used.

What is Arm's Length?

n. a person who is authorized to act on someone else’s behalf in a legal or business matter is called attorney in fact, who then acts in the principal’s name. say for example, signing the principal’s name to documents and filing suit with the principal’s name as plaintiff. Since he is required to be completely honest, fair and loyal to the principal hence attorney-client priviledge holds for his contract with his client. But the power of attorney is intended to be produced before court.